Key Points
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Home Depot consistently maintains a substantially higher revenue baseline than Lowe’s.
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Over the last eight quarters, both companies have displayed recognizable quarter-over-quarter seasonal fluctuations without breaking their long-term stability patterns.
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Investors should watch whether the persistent revenue gap between the two companies widens or narrows in upcoming quarters.
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Home Depot: Maintaining Steady Revenue Scale
Home Depot (NYSE:HD) primarily generates revenue by selling building materials, home improvement items, and installation services to various consumers and contractors.
It announced a strategic partnership with Hertz to benefit military personnel on May 1, 2026, and reported approximately 12% EBIT margin for the quarter ended May 3, 2026.
Lowe’s: Navigating Operational Adjustments
Lowe’s (NYSE:LOW) operates as a home improvement retailer offering construction materials, appliances, and repair services to homeowners and professionals.
While completing a permanent workforce reduction at its North Carolina facilities in early 2026, it recorded 33% gross margin for the quarter ended May 1, 2026.
Why Revenue Matters for Retail Investors
Revenue represents the total amount of money brought in by a company’s operations before expenses, making it a critical starting point for evaluating overall business scale.
Quarterly Revenue for Home Depot and Lowe’s
Quarter (Period End)Home Depot RevenueLowe’s RevenueQ3 2024$43.2 billion (period ended July 2024)$23.6 billion (period ended Aug. 2024)Q4 2024$40.2 billion (period ended Oct. 2024)$20.2 billion (period ended Nov. 2024)Q1 2025$39.7 billion (period ended Feb. 2025)$18.6 billion (period ended Jan. 2025)Q2 2025$39.9 billion (period ended May 2025)$20.9 billion (period ended May 2025)Q3 2025$45.3 billion (period ended Aug. 2025)$24.0 billion (period ended Aug. 2025)Q4 2025$41.4 billion (period ended Nov. 2025)$20.8 billion (period ended Oct. 2025)Q1 2026$38.2 billion (period ended Feb. 2026)$20.6 billion (period ended Jan. 2026)Q2 2026$41.8 billion (period ended May 2026)$23.1 billion (period ended May 2026)
Foolish Take
Examining the revenue trends for Home Depot and Lowe’s reveals the former’s dominance in the home improvement retail industry. Home Depot benefits greatly from its professional contractor customer base, which contributes about half its sales.
Although the spring and summer months represent key seasonal periods for sales growth, both companies saw share prices fall as interest rate headwinds and a soft housing market put downward pressure on their stocks. Home Depot shares dropped to a 52-week low of $289.10 in May while Lowe’s fell to $203.40 in June.
Consequently, Home Depot’s stock valuation became attractive at a price-to-sales ratio (P/S) of 1.99, the first time in the past year it’s been below two, after it reported results for its fiscal fist quarter ended May 3. This caused investors to jump back into the stock, and now its sales multiple has edged past two again.
Lowe’s remains at a compelling valuation with a P/S ratio of 1.3, around a low point for the past year. It’s a solid company that just raised its dividend 4% to $1.25 per share. If you buy the stock before July 22, you’re eligible for the next payout on August 5.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe’s Companies. The Motley Fool has a disclosure policy.
